CP Business Development in Bangladesh

Written By:
Md. Tarek Rahman
Comilla University
Department of Management Studies
Cell: +8801947690360

C.P (Charoen Pokphand):

C.P is a group of companies originated from Thailand Charoen Pokphand Group and
C.P.Bangladesh is a sister concern of C.P. Group Thailand. CP Fried Chicken is a part of the C.P
Bangladesh Co Food Business. It Started on April 7, 2008 with a mission- Kitchen of
Bangladesh.
Previously CP Fried Chicken used to be known as Five star fried chicken. Now they have
branches all over places of Dhaka like Dhanmondi, Gulshan 1, Gulshan 2, Uttara, Lalmatia,
Mirpur and many others.
Some of their popular dishes are Crispy Fried Chicken, Spicy Fried Chicken, Masala Chicken.
Besides marinated chicken company is now producing Chicken Balls and Chicken Sausages and
planning to produce many more food items in near future.
Charoen Pokphand Foods Public Company Limited is the leading agro-industrial and food
conglomerate in the Asia Pacific region. The Company operates in both the livestock (swine,
broilers, layers, and ducks) and aquaculture (shrimp and fish) businesses. The vertically
integrated businesses incorporate the manufacturing of animal feed, animal breeding and animal
farming; meat processing, the manufacturing of semi-cooked meat and fully-cooked meat; food
products and ready meal products, as well as the meat and food retailer and restaurant
businesses.
CPF is a pioneer and leader in the production and sale of animal feed in Thailand. The major
products include swine feed, chicken feed, duck feed, shrimp feed and fish feed. CPF produces
various form of feed, such as concentrate, powder and pellet, with feed-mill plants located in
every region throughout Thailand. The Company sells to small independent farmers and large
farms, both directly and via appointed agents or distributors across the country.
CPFs feed formulas are produced with adherence to the nutrition requirements specified for
each animal type and its stage of growth. All production processes are computer controlled to
ensure the uniformity of quality and compliance with exacting standards. As a result, CPF is able
to produce feed of a high quality and a low feed conversion ratio to help farmers reduce their
farming costs. These feeds are distributed under Company-owned brands such as CP, Hyprovite,

Hi-Gro and Star Feed; Novo, Safe Feed and Erawan;, Hogtonal, C.F. and Anvipro; Marine, HiGrade, Turbo and Hilac, Blanca, Stargate, Safe Fo and Safe Fish.
However this paper is targeted to what to do to develop CP food business in Bangladesh. Like
Thailand Bangladesh is a prospectus business area for CP Food group.
C.P. Food
Bangladesh Co., Ltd introduces new Five Star Chicken Roasted products. However
Company Overview
C.P. Bangladesh Co., Ltd. is a sister concern of C.P. Group Thailand. C.P. Bangladesh Co., Ltd.
is incorporated in Bangladesh on 14th January 1999 doing business in the Agricultural industry,
Poultry sector. Though C.P. Bangladesh Co., Ltd is not in Bangladesh many years, but in this
shorter period it has established its own Feed mills, Breeder Farm, Hatcheries, G.P. farm, fish
feed mill all over the country.
C.P. Bangladesh Co., Ltd has established with a vision To be a leader in Agro-business industry
in Bangladesh and each day it is getting closer to its vision.
C.P. Bangladesh Co., Ltd now produce Poultry feed (both layer and broiler), breeder feed, fish
feed and cattle feed, and also animal health medicine.
In 2008 it has started a new department as Food business with its brand Five star fried
chicken which is now CP fried chicken with the vision Kitchen of Bangladesh.
CP Food Business set up the food processing plant outside Dhaka City and follows the product
testing went on with variety of both ready to eat (RTE) food as CP Fried Chicken (it is a famous
and successful brand of fried & grilled chicken developed in Thailand by parent company) and
ready to cook (RTC) food as chilled products produced such as CP Chicken Ball and CP chicken
sausage which is available in all supermarkets in Dhaka City.
The Charoen Pokphand Group is the largest business conglomerate in Thailand. Its largest
subsidiary is Charoen Pokphand Foods, which achieved 116.5 billion baht in revenue in 2005,
earning a profit of 6.747 billion baht.[1] Apart from agribusiness, the family-owned
conglomerates interests range from retailing, as the franchisee of Thailand 7-Eleven stores, to
telecommunications, as the owner of True Corporation, a mobile telephone service provider,
Internet service provider, and cable television company. CP Subsidiaries also include PRC
registered Super Brand Mall, Lotus Super center chain.
The company has grown into a global business, with more than 250 subsidiaries in 20 countries,
including China, where it is known as the Chia Tai Group.
As a Business CP has the following business thinking:

Product or Service Offerings

Target Market

Marketing Plan

Industry and Competitive Analysis

Pro-Forma Financials

Resumes of the Company Principals

Your Offering (what type of financing you're seeking)

But when you are going to develop or expand your business you need to re justify these items.
You should think the facts in the following manners in case of CP.
1. Product or Service Offering
Create a section describing your product or service offerings in detail, as well as how much
you'll charge for what you're selling.
2. Target Market
Present your primary and secondary target markets, along with any research that demonstrates
how your target market will benefit from and consequently purchase what you're offering.
3. Marketing Plan
Present your marketing plan, which should show in detail how you'll reach your target market.
This part of the plan will include advertising and promotional strategies. (Read Advertising,
Crocodiles And Moats to learn more about the importance of good advertising.)
4.

Industry and Competitive Analysis

Include a complete and thorough industry and competitive analysis that includes all stakeholders
in your business. Don't forget to include governmental and regulatory agencies.
(Read Competitive Advantage Counts to learn the importance of being different from the pack.)
5.

Financial Statements

These must be complete, accurate and thorough. Each number on your spreadsheets must mean
something. Don't estimate payroll, for instance; determine what it will actually be. Your income
statement must reconcile to your cash flow statement, which reconciles to your balance sheet.
Your balance sheet must balance at the end of every period. You must have supporting schedules
(e.g., depreciation and amortization schedules) to back up your projections. (To learn more about
what investors will be looking for, see Reading The Balance Sheet and Breaking Down The
Balance Sheet.)
6. Resumes of Company Principals
Include the bios and professional backgrounds of all significant employees of your business. You
will want to emphasize how their backgrounds have prepared them to take on the challenge of
running your new startup. Also, if an employee's business background is in a significantly
different industry, you might want to emphasize how this can be an advantage instead of a
detriment. (Read more in Evaluating The Board Of Directors.)
7. Your Offering
Present what level of investment you're seeking and for what purposes you will use the funds. If
you're selling business units, state the individual price per unit.
Once you've put together all of this key information, make sure to present your plan
professionally. It should be typed, margin aligned and neatly bound. Use color graphics and
pictures where possible. Do not handwrite changes or corrections. The inside of your business
plan should be near book or magazine quality.

SWOT Analysis of CP
Strenght
CP has a differentiation in products, crispy, crunchy, and healthy chicken product.
Weakness
. CP sets the expensive price and not appropriate with the volume each portion
. The service is still standard to compete with others competitor,

. The place is also standard and there is inefficient seat location in some outlets
Opportunities
. Rising health consciousness and hygiene concerns mean food origin has become an important
purchasing determinant for affluent consumers, lifting packaged food sales.
. Where health and hygiene concerns can be met, fresh produce has a strong audience among
wealthier consumer groups owing to its relative health benefits.
Threat
. There will be more competitors in a same product
. People avoid consuming more fast food cause of healthy

Keys to Success
To succeed in this business we must:

Create a unique, innovative, entertaining menu that will differentiate us from the rest of
the competition.

Control costs at all times, in all areas and implement a conservative approach to growth
policy. Although, we provide more than enough fund to open more than one outlet, we
want to be on the safe side of the business.

Sell the products that are of the highest quality, as well as keeping the customers happy
with all of our product categories from food to store merchandising.

Provide 100% satisfaction to our customers and maintaining the level of excellent
services among other competitors.

Encourage the two most important values in fast food business: brand and image, as these
two ingredients are a couple of main drivers in marketing communications.

Get access to high-traffic shopping malls near the target market.

Promote good values of company culture and business philosophy.

How to Develop Business of CP Food in Bangladesh:

We know that most businesses start small and stay there.

But if that's not good enough for youor if you recognize that staying small doesn't necessarily
guarantee your business's survival. So if Cp want to survive in Bangladesh it needs to grow step
by step.
And we came to know that Previously CP Fried Chicken used to be known as Five star fried
chicken. CP Food started its Business in Bangladesh and it is good news that within a shorter
time it has opened number of showrooms to different cities. We have seen that in Comilla it has
two outlets. Alike Comilla there are number of different outlets throughout the county.

A strong Marketing Policy to Develop Business in Bangladesh.

Have to choose how you should market your product. It is the most important task of your
business. Because you have finance, manpower, quality product, but if your marketing strategy is
not strong people will not notice about you and thus they will not buy your product.
I want to propose the following marketing thinking:
i.
ii.
iii.
iv.
v.
vi.
vii.

Postering
Giving add to the TV channels News papers and Web
Camping to the education institutions
Marketing survey
Going door to door for market survey
Making more Product outlets
Renovate the test which are not accepted cordially

Built a strong Supply chain Management:

Supply Chain Management is the oversight of materials, information, and finances as they move
time to time. Strong supply chain management will help you to survive in the market. Because of
loose supply chain management businesses fails to survive to the market.
Give Honor to the employees who are leaving the organization:
CP should give honor to the employees who wants to leave the organization. And also who are
working to the organizations. Leaving members have the chance to dump the organization much.
So CP should be aware of this fact.
Expand the Number of Outlet:

Expanding Outlets is the part of marketing activity. And this mean that your going near to the
customer. If you have finance you can do this. If you has shortage you can choose number of
ways like, Franchise, Licensing and some other means.

Dont think Marketing is the expenses:

Accept marketing activities as investments. It is not your expenses rather it is your one type of
investment.
Take Help from the management Consultants:
Management is an important thing, to make your management stronger you should take help fro
the head hunters like, Anwars association, kites association, and get contractual management
support from them.